Why Do H&M, Zara And Other Fast Fashion Make Up A Pile Of "Richest People In The Country"?

When you browse through the list of the richest people in the country and the region, you will find such an astonishing fact that the most profitable thing in the world is not technology or oil companies, but rather

。

Sweden's richest man is H&M chairman Stefan Persson.

The richest man in Holland is the Brenninkmeijer family, the owner of C&A.

Spain's richest man is Amancio Ortega, founder of Zara group, Inditex group.

He was also the richest man in Europe. His total wealth in August 1st was $751 billion, which ranks second in Forbes's global billionaires list, second only to Bill Gate.

In Ireland, the Westons family has been ranked first in the fortune list for 8 years.

They own high-end.

Selfridges, but more importantly, they are also the owners of Primark.

Last September, it was known for its super low price.

It has just opened a 77000 square foot flagship store in Boston, USA.

Its selling price in the US market is 20% lower than that of Forever 21, 33% lower than Old Navy and 40% lower than that of H&M.

But according to Nomura Securities, its sales volume per square foot is 488 pounds, which is 1.6 times that of H&M.

In Japan, Ryui Masa, chairman and chief executive officer of Fast Retailing, is the top of the list, with a total of 171 billion US dollars as of 1 August.

Even if fortune had shrunk by 4 billion 800 million last year, he was still the richest man in Japan.

You know, 80% of sales in 2015 were from UNIQLO.

Inditex changes in store numbers over the past ten years

Although the advantages are different, overall, the reason for the success of fast fashion brands is its fast, fashionable, parity, and low quantity.

For example, Zara, an investment company Bernstein called "the best business model of the clothing industry", can design, produce and install a new model in 5 weeks. The refurbishing speed can be reached once every 2 weeks, and the product structure can be adjusted flexibly according to needs.

However, even in recent years, fast fashion brands have repeatedly emphasized the concept of moral fashion through various marketing, which can reduce costs and scale profits, or at the expense of environment and cheap labor.

According to the report released last month by the Hongkong NGO organization SACOM, "Reality Behind Brands" CSR Hypocrisy:An Investigative Report on China, Report, on, China, Report, on, and Reality, the supply chain of the company is concentrated in Asia, especially in Bangladesh and China. The total number of workers in the supply chain in 2015 was 1123576, which is 8 times the total number of employees in the world.

Although Inditex SA and H&M began to disclose supply chain data in 2013 years, the actual survey shows that the living environment of factory workers is still not optimistic.

Take Nanbao shoe factory in South China Sea as an example, a worker who works on a bonding line in February will earn 700 yuan in 9 days, and work for more than 12 hours per day.

Another important reason for the success of fast fashion is the change of consumer mindset and demand.

"Not long ago, you could spend a lot of money on a small tailored, well woven black dress," Vicki Cantrell, head of the National Retail Federation digital department, said in an interview with qz.com.

But now, social media has changed the way consumers interact with technology.

Social media has thrown consumers into a world where fashion images are everywhere, and fast fashion lets them quickly buy and wear styles that are seen at low prices.

This pattern of consumption has pformed clothing into "temporary treasure". "Durable wear" is no longer important.

Cantrell believes that changes in consumer mindset and demand are also the reasons for the rise of department stores in the 60 to 70 years of the last century.

At that time, a large number of middle class moved to the suburbs, creating conditions for large department stores and businesses to be super chain.

In other words, the business story of any era is essentially how to satisfy consumers intelligently.

The success of fast fashion is just another story, and every one of us boosted its birth.